Understanding Salary Advance and How to Manage It

From paid vacations to health insurance, organisations have left no stone unturned to ensure the convenience of their employees. However, with the state of the global economy and rate of inflation we tend to see, money seems to be slipping out of our bank accounts faster than we can earn it.

Despite meticulous planning and stringency, salaries are exceedingly difficult to sustain for an entire month. Many people have next to no savings and continue to rely on credit cards. Emergency circumstances, including medical bills, educational expenses or an unplanned trip, might not fit into your monthly budget.

Credit cards can be the best scope to sustain by the end of the month but they can often add up to hefty amounts if you are not able to pay off your bills on time. Is there something better than credit cards? Salary advance can be your boon at the end of the month. Read on to understand what it is and its benefits. 

What is a Salary Advance?

A salary advance is fairly self-explanatory – it refers to an advance taken by employees in order to carry out any unforeseen or unwarranted expenses. The salary loan given is recovered in instalments and has very low interest rates.

With the concept of a salary advance catching on, many instant loan apps and services offer it to tide over a cash crunch at the end of the month. These salary loan apps are bridging the gap between employees and their expenses. 

Fibe, for instance, is one such app that provides salary advances for working professionals within a few clicks. With a hassle-free process, a salary advance loan is an excellent alternative to credit cards. 

Why Salary Advance?

Here are some benefits and features that help professionals keep pace with life and its many demands with this credit facility: 

• High Loan Amounts

The convenience and flexibility associated with this loan gives it an upper hand. With Fibe, you can get up to ₹5 lakhs with an easy online application process and minimal documentation.  

• Low Interest Rates

Compared with rates of other loans and credit cards, salary advance loans have lower interest rates. Moreover, they may come with no added charges, which makes this a great option for new working professionals. 

• Pay Back Flexibly

With Fibe, you can repay the funds over a period of 3 to 36 months as per your convenience. Many organisations also offer easy repayment facilities as your salary is used to repay the loan amount the following month.

• Collateral-free

Salary advance loans are unsecured loans that don’t require any collateral. If you apply for this loan, you do not have to worry about pledging and risking an asset.

• Swift Approval and Disbursal

Thanks to evolved transactional systems and tech, your salary advance can now make it to your account quickly. Since there is no middle-man involved, all you need to do is send an online application. This quick disbursement is a lifesaver when you are in need of some quick and an instant loan.

• Low Importance of Credit Score

The process does not require an outstanding credit score. Salary advance apps like Fibe do not rely solely on your credit score in order to lend you money, making it more millennial-friendly.

• No Restriction on End Usage

You can use your advance salary for any kind of financial requirement, such as:

1. For impromptu medical bills
2. For vacation or travel
3. For relocating to a new city/ town
4. For repairing your vehicle 
5. For renovating your home
6. For paying fees/ bills/ rent
7. For buying household items (including groceries)
8. For festive shopping or upgrading electronics

How to Go About the Process?

If your employer offers an instant salary advance, that can be an ideal scenario. Organisations can often be slow to move on this front and may require additional paperwork such as long salary advance forms, etc. But this is far from being the only option. 

Fibe offers a hassle free salary advance within minutes. Here’s how it works:

• Onboarding: The Salary Advance program is successfully activated once your company signs up for it
• Integration: Your company shares all relevant information on it to you via email.
• Disbursal: You are directed to the Fibe portal for approval for salary advances.
• Smart Repay: You can set up the Smart Repay option to conveniently manage the repayment.

Via Fibe, you can apply for a salary advance of up to ₹5 lakhs and repay the amount over the next 36 months. Thanks to salary advances, no need to worry about cash crunch at the end of the month anymore. Get started by downloading the Fibe’s Personal Loan App and get your salary in advance.